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2011 Edelman Trust Barometer

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2011 Edelman Trust Barometer Findings

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Edelman Trust Barometer at a glanceEleventh annual study5,075 people in 23 countries on five continentsAges 25 to 64College-educatedIn top 25% of household income per age groupin each countryReport significant media consumption and engagementin business news and public policy 2

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The Edelman Trust Barometer in retrospect 2010 Trust is now an essential line of business 2009 Business must partner with government to regain trust 2008 Young influencers have more trust in business 2007 Business more trusted than government and media 2006 “A person like me” emerges as credible spokesperson 2005 Trust shifts from “authorities” to peers 2004 U.S. companies in Europe suffer trust discount 2003 Earned media more credible than advertising 2002 Fall of the celebrity CEO 2001 Rising Influence of NGOs 3

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Globally, trust increases in all institutions Trust in Institutions – Global 2010 2011 100% 90% +4 +2 80% +5 +4 70% 61% 60% 57% 56% 54% 52% 49% 50% 47% 45% 40% 30% 20% 10% 0% NGOs Business Government MediaA7-10. [Institutions TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what isright. On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREAT DEAL, howmuch do you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina) 6

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Emerging markets dominate as ―business trusters‖ U.S. drops to within 5 points of Russia Trust in Business – Top 10 Countries by GDP 2010 2011 Trusters Neutral Distrusters 100% 90% +19 81% 80% 70% -8 70% 67% 64% +12 62% 59% 62% 61% +12 60% 57% 53% 54% 52% 48% 49% 44% 50% 46% 40% 42% 41% 40% 36% 30% 20% 10% 0% Brazil India Italy China Japan Germany France US UK RussiaA9. [Business in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what isright. On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREAT DEAL, how much doyou trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 7

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Business more trusted than government in 1/3 of markets German, U.S. government trust erodes; China, Brazil rise Trust in Government – Top 10 Countries by GDP 2010 2011 Trusters Neutral Distrusters 100% +14 88% +46 90% 85% 80% 74% 70% -6 60% -10 51% 49% 50% 43% 45% 46% 42% 43% 44% 43% 43% 39% 40% 36% 38% 38% 39% 40% 33% 30% 20% 10% 0% China Brazil Japan France Italy India UK US Russia GermanyA7. [Government in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institutionto do what is right. On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREATDEAL, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 8

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Increased trust in media driven by China, Brazil, and Japan Developed markets generally distrustful Trust in Media – Top 10 countries by GDP 2010 2011 Trusters Neutral Distrusters 100% +17 90% +19 80% 80% 73% 70% 63% +12 58% 60% 54% - 11 50% 48% -9 50% 45% 45% 38% 39% 37% 37% 37% 38% 40% 36% 36% 31% 30% 27% 22% 20% 10% 0% China Brazil India Japan France Italy Germany Russia US UKA8. [Media in general TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institutionto do what is right. On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREATDEAL, how much do you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 9

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Trust in NGOs now on par with business in emerging markets More trusted than business in developed markets Trust in Business and NGOs Business NGOs Brazil China U.S. UK/FR/GER100%90% 81% 80%80%70% 63% 59% 61% 63% 59%60% 56% 58% 55% 56% 55% 48% 46% 48%50% 40%40%30%20%10% 0% 2008 2011 2008 2011 2008 2011 2008 2011A7-10. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right.On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREAT DEAL, how muchdo you trust [INSERT] to do what is right? (Top 4 Box) Informed Publics ages 25-64 in the U.S., UK/FR/GER, Brazil and China 10

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In U.S., 2011 decline mirrors 2008-2009 drop Only country to see across-the-board fall Trust in Institutions – U.S. Informed Publics ages 25-64 Business Government Media NGOs 80% 70% 63% 63% 60% 59% Worldwide 54% Financial Crisis 55% 50% 45% 46% 46% 46% 43% 40% 36% 40% 38% 31% 30% 30% 27% 20% 2008 2009 2010 2011A7-10. [TRACKING] I am going to read you a list of institutions. For each one, please tell me how much you TRUST that institution to do what is right.On a 9-point scale where one means that you ―DO NOT TRUST THEM AT ALL‖ and nine means that you ―TRUST THEM A GREAT DEAL, how muchdo you trust [INSERT] to do what is right? (Top 4 Box, Trust) Informed Publics ages 25-64 in the U.S. 12

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What matters for corporate reputation: Quality, transparency, trust, employee welfare Reputation Factors – Global Offers high quality products or services 69% Has transparent and honest business practices 65% Is a company I can trust 65% Treats employees well 63% Communicates frequently and honestly on the state of its business 55% Prices its brands fairly and competitively 55% Is a good corporate citizen 51% Is an innovator of new products, services or ideas 46% Has highly-regarded and widely admired top leadership 39% Delivers consistent financial returns to investors 39%B72-81. [TRACKING] How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where onemeans that factor is ―not at all important‖ and nine means it is ―extremely important‖ to overall reputation. The first one is [INSERT FIRST]. How importantis this factor to overall reputation on a 9-point scale where one means ―not at all important‖ and nine means ―extremely important‖? (Top 2 Box, Very/Extremely Important) Informed Publics ages 25-64 in 23 countries 19

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By comparison, greater expectations for business to invest in society’s interests in developed and emerging markets Believe corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value 100% 91% 89% 89% 89% 90% 85% 85% 85% 82% 81% 81% 80% 79% 78% 78% 80% 74% 73% 72% 71% 71% 70% 67% 63% 62% 60% 55% 50% 40% 30% 20% 10% 0%G120. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way inwhich they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’sinterests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in 23 Countries 21

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And government must step in to ensure business behaves responsibly Believe that government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner 100% 90% 82% 82% 80% 74% 73% 70% 69% 70% 67% 66% 63% 63% 62% 61% 61% 58% 57% 56% 60% 53% 53% 50% 49% 48% 50% 44% 42% 40% 30% 20% 10% 0%G123. And which of the following statements is closest to your view? I trust corporations to act on their own to behave in a responsible mannerOR I think government needs to regulate corporations’ activities to ensure that they are behaving in a responsible manner. Informed Publicsages 25-64 in 23 Countries 22

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CEOs and ―person like me‖ swap spots In 2011, CEOs in top tier Credible Spokespeople – Global 2009 2011 An academic or expert 70% Academic/expert 62% Technical expert within the 64% company Financial/industry analyst 49% A financial or industry analyst 53% Person like yourself 47% CEO 50% NGO representative 41% NGO representative 47% Regular employee 32% Government official 43% CEO 31% Person like yourself 43% Government official 29% Regular employee 34%D104-111. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information abouta company from that person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all?(Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in 20 countries (excludes Singapore, UAE and Argentina) 26

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In crisis situations, people want to hear from multiple voices Though CEO must lead the charge Trusted spokesperson Preferred spokesperson Preferred spokesperson when the during a company crisis during a product recall local community has been damaged 50% 50% 50% 40% 40% 37% 38% 40% 29% 30% 30% 30% 30% 25% 20% 18% 20% 15% 20% 17% 18% 13% 12% 11% 12% 10% 8% 10% 10% 4% 4% 4% 4% 0% 0% 0%D100. Now I am going to read you a list of people. When a company experiences a crisis, please tell me which one of the following people you trust the most to deliver honest informationabout that crisis. Informed Publics ages 25-64 in 23 countriesD101. Keeping the same list of people in mind, when a company issues a product recall, which one person do you want to hear information from about that recall? Informed Publics ages25-64 in 23 countriesD102. Keeping the same list of people in mind, when a company’s actions have damaged the local community where it operates, which one person do you want to hear information fromabout that damage? Informed Publics ages 25-64 in 23 countries 27

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Search engines first source people go for news about a company Online news, including traditional outlets, second stop Where Informed Publics go for company news and information First Source Second Source Are these the same types of sources you consult first for information about a business crisis? Online search engine 29% Online news sources 23% Print Online news sources 19% (newspapers/magazines) 17% No, Print 12% (newspapers/magazines) 15% Online search engine 16% Broadcast (radio/TV) 12% Broadcast (radio/TV) 14% Yes, 88% Company website 11% Company website 11% Friends and family 7% Friends and family 10% Social media 5% Social media 7% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%(NETS) I139. There are a number of sources one could use to find general news or information about a company. When looking for general news or information about a company, which one typeof information source would you generally consult first? I140. And after [INSERT I139 RESPONSE], which one type of information source would you generally consult second when looking forgeneral news or information about a company? II141. Now, thinking about a business crisis, are [INSERT I139 AND I140 RESPONSE] the same types of sources you consult first for informationabout a business crisis? Informed Publics ages 25-64 in 23 countries 28

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Globally, traditional media and search engines most trusted sources Trusted Information Sources – Trust a Great Deal Newspapers 33% Traditional Television or television news 31% Magazines or business magazines 28% Radio or radio news 27% Online search engines 29% sources Multiple Online News/RSS feeds 18% Blogs 11% Social Media Content-sharing sites, such as YouTube 9% Social networking sites 9% Microblogging sites, such as Twitter 7% Corporate Corporate communications such as press releases 18% Corporate/product advertising 11%H125-136. Now I’m going to read you a list of places where you might get information about a company. For each, please tell me if you trust it – a great deal,somewhat, not too much, or not at all as a source of information about a company? (Trust A Great Deal) Informed Publics ages 25-64 in 23 countries 30

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Informed publics need information from multiple sources, multiple voices And need to hear it 3-5 times to believe Global Don’t Ten or more know, 2% Once (1), 4% times (10+), 6% Six to Nine times (6-9), 8% Twice (2), 22% Four or Five times (4 - 5), 26% 3-5 times 59% Three times (3), 33%H137. Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general doyou need to be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number.Informed publics ages 25-64 in 23 countries 31

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In U.S. and U.K. skepticism mounts Number who need to hear information 3+ and 10+ times increases U.S. in 2011 Once Twice 3 times 4-5 times 6-9 10+ Don’t know US 1% 12% 28% 34% 9% 14% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3+ times: 85% (15 pt increase in two years) U.K. in 2011 Once Twice 3 times 4-5 times 6-9 10+ Don’t know UK 3% 10% 25% 31% 18% 9% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3+ times: 83% (10 pt increase in two years)H137. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in generaldo you need to be exposed to something about a specific company to believe that the information is likely to be true? Please give me a number.Informed publics ages 25-64 in the U.S. and the U.K. 32

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Through personal action, trust has tangible benefits Actions Taken Over Past 12 Months – Global Distrusted Companies _+ Trusted Companies 73% 85% Refused to buy products/services Chose to buy products/services 67% 75% Criticized them to a friend/colleague Recommended them to a friend/colleague 54% Paid more for products/services 33% 44% Shared negative opinions online Shared positive opinions online 19% 30% Sold shares Bought sharesF118. [TRACKING] Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you trust?Please answer yes or no to each action. (Percent ―Yes‖) Informed Publics ages 25-64 in 23 countriesF119. [TRACKING] Still thinking about the past 12 months, have you taken any of the following actions in relation to companies that you do not trust?Please answer yes or no to each action. (Percent ―Yes‖) Informed Publics ages 25-64 in 23 countries 34

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Trust protects reputation When a company is distrusted When a company is trusted 57% will believe negative information after hearing it 1-2 times 51% will believe positive information will believe positive after hearing it 1-2 times 15% information after 25% hearing it 1-2 times will believe negative information after hearing it 1-2 timesThink about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information)about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in 23 countriesThink about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) aboutthat company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in 23 countries 35

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ConclusionsBusiness must align profit and purpose for socialbenefitCurrent media landscape plus increasedskepticism requires multiple voices and channelsDemand for authority and accountability set newexpectations for corporate leadershipTrust is a protective agent and leads to tangiblebenefits; lack of trust is barrier to change 36

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The Transformation of Trust Old Trust Framework New Trust Architecture Control InformationProtect the Brand Stand Alone WHAT Focus Solely on Profit Profit With Purpose 37